Core Insights - Meridianbet, a subsidiary of Golden Matrix Group Inc. (NASDAQ: GMGI), has launched a new mobile feature called "Watch & Bet" that allows users to stream live sports in full-screen mode while placing in-play bets simultaneously [1][6] - This feature aims to enhance user engagement by increasing in-play betting volume, extending session duration, and driving higher revenue per active user, thereby supporting growth in turnover, user value, and margin [1][6] Company Overview - Meridianbet was founded in 2001 and is a leading provider of betting and gaming technology, licensed in 18 jurisdictions across Europe, Africa, and South America [4][7] - The company utilizes proprietary technology and scalable systems to support multi-market operations with a strong omnichannel presence, including retail, online desktop, and mobile gaming [4][7] Financial Performance - Golden Matrix Group Inc. reported FY24 GAAP revenue of $151.1 million and organic revenue of $159.7 million (unaudited) [6]

Company Overview - Golden Matrix Group, Inc. (GMGI) is an online gaming company based in Las Vegas, providing a wide range of products and software solutions to industry operators and end users [3] - The company operates in more than 20 regulated jurisdictions globally, including Europe, Africa, Asia Pacific, Central and South America, the U.K., and Australia, offering casino, sportsbook, and competition products [3] Market Position and Growth - GMGI is recognized as a growing player in the global gaming and betting markets, with a strategic focus on expanding its footprint through mergers and acquisitions [5] - The company’s subsidiary, Meridianbet, recently secured a license in Brazil, enhancing its presence in one of the largest regulated gaming markets [5] Strategic Initiatives - GMGI has adopted a strategic M&A model, acquiring companies that were previously strategic partners, which helps in retaining experienced management teams and reducing execution risk [5] - The latest version of GMGI's proprietary B2B iGaming aggregator platform, GM-AG (Atlas), was launched in 2024, providing access to over 10,000 games and incorporating AI capabilities to enhance user engagement [5] Financial Position - As of December 31, 2024, GMGI reported $30.1 million in cash and a net debt to EBITDA leverage ratio of 1.8 times, positioning the company well for future growth investments and acquisition-related considerations [5] Valuation - Based on forward enterprise value (EV)/revenue analysis, the fair value of GMGI shares is estimated at $4.00 [5]

Core Insights - Expanse Studios, a subsidiary of Golden Matrix Group Inc. (NASDAQ: GMGI), has received game certification for its crash game Super Heli in Brazil, marking a significant milestone in its global expansion strategy [1][5][8] - The certification was issued by Gaming Laboratories International (GLI) and ensures compliance with Brazil's federal iGaming technical standards [1][5] - The Brazilian iGaming market is projected to generate US$ 5.6 billion in gross gaming revenue (GGR) in 2025, indicating substantial growth potential for the company [8] Company Overview - Expanse Studios, founded in 2017, specializes in B2B iGaming content, offering a portfolio of over 55 proprietary games including slots, crash games, and table games [6] - Golden Matrix Group (NASDAQ: GMGI) is a developer and licensor of advanced online gaming platforms, operating in regulated markets globally through its B2B and B2C business units [7][9] Product Details - Super Heli is an innovative crash-type iGaming title where players bet on a rising multiplier and attempt to cash out before it crashes [4] - The certification of Super Heli in Brazil opens the door for broader deployment of the company's proprietary content in the region [5]

Golden Matrix Group (GMGI) Q1 2025 Earnings Call March 24, 2025 03:20 PM ET Company Participants Brian Goodman - Co-Founder & CEORich Christensen - CFOZoran Milošević - CEO of Merdianbet Group Operator Thank you, and good morning, everyone. Welcome to Golden Matrix Group's Fourth Quarter and Full Year twenty twenty four Earnings Call. We appreciate you joining us today. On today's call are Brian Goodman, CEO of Golden Matrix Group Zoran Milosevic, CEO of Meridian Bet Rich Christiansen, CFO of Golden Matrix ...

Revenue Growth - Fourth quarter revenue increased by 81% to $46 million, while full-year revenue rose by 63% to $151 million[6] - Meridianbet reported a 14% growth in full-year revenue to $106 million, with online revenue up 18% to $80 million[7] - Total revenues for the twelve months ended December 31, 2024, were $151.12 million, a 62.5% increase from $92.99 million in 2023[27] - For Q1 2025, the company expects revenue between $42 million and $45 million, representing year-over-year growth of 69% to 80%[8] Profitability - Gross profit for the fourth quarter grew by 45% to $27 million, and full-year gross profit increased by 30% to $89 million[6] - Gross profit for the same period was $88.57 million, compared to $68.24 million in the previous year, reflecting a gross margin improvement[27] - Adjusted EBITDA for the fourth quarter rose by 69% to $6.5 million, while for the full year it increased by 4% to $22.2 million[6] - Adjusted EBITDA for the twelve months ended December 31, 2024, was $22.19 million, up from $21.25 million in 2023[32] Financial Position - Cash reserves stood at $30 million, providing financial flexibility for future investments[6] - Total current assets increased to $45.07 million in 2024 from $26.93 million in 2023, driven by higher cash and inventory levels[25] - Cash and cash equivalents increased to $30.13 million in 2024 from $20.41 million in 2023, indicating improved liquidity[25] - Total liabilities rose to $104.77 million in 2024, compared to $19.87 million in 2023, primarily due to increased current liabilities[26] Losses and Expenses - Net loss attributable to GMGI for the twelve months ended December 31, 2024, was $1.48 million, a significant decline from a net income of $13.70 million in 2023[27] - The company reported a comprehensive loss of $6.19 million for the twelve months ended December 31, 2024, compared to a comprehensive income of $13.07 million in 2023[27] - Operating expenses for the twelve months ended December 31, 2024, were $85.83 million, up from $54.48 million in 2023, reflecting increased investment in operations[27] Strategic Initiatives - The company plans to enhance AI-driven gaming innovation and expand into new regulated markets, including Latin America and Europe[15] - The company aims to pursue strategic acquisitions to increase market share and product offerings[15] - GMAG B2B gaming platform saw wagering volume surge by 84% to $4.7 billion, driven by AI-powered engagement tools[7] Share Metrics - The weighted average ordinary shares outstanding increased to 113.51 million in 2024 from 83.48 million in 2023, impacting per-share metrics[27] Growth in Game Portfolio - Expanse Studios achieved 174% revenue growth in 2024, expanding its portfolio to 55 proprietary games[8]

Acquisition and Investments - Golden Matrix Group acquired 100% of MeridianBet Group for a total consideration of $12 million in cash, $15 million in promissory notes, and 82,141,857 restricted shares of common stock[37]. - The Meridian Purchase Agreement includes deferred cash consideration of $18 million due by April 26, 2024, and contingent post-closing consideration of $5 million and 5 million restricted shares, contingent on certain conditions[38]. - The company acquired 100% ownership of Global Technology Group Pty Ltd for approximately $113,000, which holds an AGCC license expiring on December 10, 2024[29]. - Golden Matrix purchased an 80% interest in RKingsCompetitions Ltd for an undisclosed amount, with a buyout of minority owners costing $1,323,552 in restricted common stock[30][31]. - The Company entered into a Share Exchange Agreement to acquire an 80% ownership interest in Classics Holdings Co. Pty Ltd., with the transaction closing on August 21, 2024, and an effective date of August 1, 2024[54][58]. - The True-Up Amount related to the Classics acquisition was determined to be $518,650 as of February 17, 2025, and remains outstanding[56]. - The Classics Sellers may earn additional cash and stock consideration based on Classics' total net profit from the Closing Date until June 30, 2025, with a maximum earnout of AU$2,184,000 and 242,391 shares if profits exceed AU$3,500,000[57]. - The GM2 Asset Purchase Agreement involved issuing 4,166,667 shares of common stock and an earn-out payment based on revenues generated from the acquired asset[28]. Market Expansion and Operations - Golden Matrix's market expansion includes operations in over 15 jurisdictions across Europe, Africa, and Central and South America following the Meridian acquisition[37]. - The Company operates online sports betting, online casino, and gaming operations in over 15 jurisdictions across Europe, Africa, and Central and South America, employing approximately 1,200 personnel[62][63]. - The Company has approximately 700 company-owned or franchised betting shops, with about 250 owned by subsidiaries and 450 by franchisees, focusing on sports betting and online casino games[63]. - The Company operates in multiple international markets, which helps mitigate seasonal downturns in sports betting by promoting casino games, eSports, and virtual sports during quieter periods[111][112]. - The Company operates in multiple jurisdictions, holding licenses for sports betting and online operations in countries such as Serbia, Belgium, and Brazil[146][151][154]. Technology and Innovation - The Company's proprietary technology supports scalable systems across multiple jurisdictions and currencies, ensuring consistency in odds setting and risk management[64]. - The Company employs an omni-channel approach, allowing consumers to access offerings through various platforms, including mobile and desktop applications[65]. - The Company utilizes machine learning technologies to personalize the betting experience and continuously update odds, reducing the need for manual oversight[70][80]. - The Company has implemented an omni-channel approach, including iOS, Android, mobile browser, desktop, SMS, SST, and USSD, to cater to diverse customer preferences[81]. - The Company has ongoing investments in new products and technologies, which are inherently risky and may not yield adequate returns[216]. - The Company may face challenges in responding to rapid technological changes, which could adversely affect its financial condition[217]. - There are inherent risks in introducing new products or updated versions, including potential software errors from significant code rewrites[217]. - Customers may encounter difficulties during the upgrade process to newer technology platforms, potentially leading to revenue loss for the Company[217]. Financial Performance and Risks - The Company has faced various risks, including gaming fraud, technology failures, and foreign exchange risks, which could impact future performance[23]. - The Company's financial performance is influenced by global economic conditions, with rising interest rates and inflation creating uncertainty about consumer spending in the gaming and entertainment sectors[130]. - Net income attributable to the Company decreased by $15,182,787, or 111%, resulting in a net loss of $1,480,249 for the twelve months ended December 31, 2024, compared to net income of $13,702,538 for the same period in 2023[195]. - The Company anticipates needing to raise funding to repay $9,600,000 under the Secured Convertible Note and $20.2 million under the Facility Agreement, as well as post-closing obligations related to the Meridian Purchase Agreement[171]. - The Company may face significant costs related to legal fees for licensing applications and regulatory compliance[135]. - Economic downturns and adverse political conditions could negatively impact consumer demand for the company's products and services[169]. - The Company acknowledges risks related to regulatory changes that could negatively impact its operations and licensing status[166]. - The Company may experience significant dilution to existing shareholders if repayment amounts are made in shares of common stock[197]. Strategic Focus and Growth - The Company is focused on expanding its GM-X and GM-Ag Systems into Europe, the U.S., South America, and Africa, with plans to apply for a gaming license in the U.S.[94]. - The Company aims to maintain sufficient liquidity to fund operations and growth objectives, with plans to meet cash requirements through operations and sales of equity and debt securities[129]. - The Company has a growth strategy focused on strategic acquisitions, with plans to issue additional debt to fund these initiatives[129]. - The Company is committed to responsible gaming, offering tools for players to manage their gaming experiences[83]. - The Company has established revenue-sharing agreements with various third-party casino providers to enhance its gaming content offerings[72]. - The Company operates a B2B franchise model, licensing its proprietary sports betting technology to local partners, diversifying its revenue streams[77]. - The Company has a comprehensive intellectual property portfolio, including proprietary software and registered trademarks, which it believes provides a competitive advantage[107][109]. - The company plans to maintain organic revenue growth across all B2C markets and streamline operations to improve overall margins[138]. Competition and Market Position - The Company faces competition from various operators in its core markets, including Serbia, Montenegro, Malta, and Cyprus, and differentiates itself through advanced betting technologies and superior customer service[113][114][116]. - The Company has implemented strategic measures to protect the market for licensed operators, collaborating with local regulators to prevent unlicensed competition[121]. - The Company faces intense competition in the global entertainment and gaming industries, which may affect its market position and profitability[169]. - Competitors are continuously upgrading their product offerings, necessitating the Company to enhance its technology platform and service offerings[217]. - The Company has a diversified customer base across geographical locations, minimizing revenue instability tied to any specific customer group[122][124]. Financial Obligations and Capital Management - The consideration payable to the Meridian Sellers includes $19,870,460 in cash, with $9,870,460 due 12 months after closing and $10,000,000 due 18 months after closing, plus $15,000,000 in promissory notes due 24 months after closing[175]. - The Facility Agreement requires maintaining a net debt/EBITDA ratio of less than or equal to 3.0x, which was met as of December 31, 2024[185]. - The company has entered into an Equity Distribution Agreement allowing for the sale of up to $20 million in common stock, although no shares have been sold under this agreement to date[178][181]. - The principal balance of the Secured Convertible Note was $9,600,000 as of December 31, 2024, secured by a security interest over substantially all of the company's assets[190]. - The company has up to $8.5 million available for sale under its Equity Distribution Agreement to support potential acquisitions[136]. - The Company believes it has sufficient cash on hand to support operations for the foreseeable future, despite anticipated capital needs[214].

Core Insights - Expanse Studios, a subsidiary of Golden Matrix Group Inc. (NASDAQ: GMGI), is expanding its international presence through a partnership with Slotino, a leading online casino operator in Bulgaria [1][6] - This integration is facilitated by Dench eGaming Solutions and aims to strengthen Expanse Studios' position in the growing European iGaming market, following its successful entry into the U.S. social casino and sweepstakes market [1][6] Company Overview - Expanse Studios, founded in 2017, specializes in high-quality iGaming content, including slots, crash games, and table games, with a portfolio of over 55 proprietary games [8] - Slotino offers a wide selection of over 2000 gaming options and has established itself as a dominant player in the Bulgarian iGaming industry [4] - Dench eGaming Solutions provides B2B software solutions tailored for the iGaming sector, enhancing customer engagement and marketing automation [5][7] Market Context - The Bulgarian iGaming market is experiencing growth, driven by increasing demand for premium gaming content, making this partnership a strategic move for Expanse Studios [6] - The integration with Slotino reinforces Expanse Studios' role as a key player in both regulated European and North American markets [6]

Group 1 - Meridianbet has officially launched its B2B operations in Nigeria, entering a regulated $2 billion betting market [1][5] - The company has secured full regulatory approval from the Lagos State Lotteries and Gaming Authority, allowing operations in sports betting and online casino verticals [1][5] - Meridianbet's entry into Nigeria strengthens its 20-year presence in Africa, leveraging its proven track record in regulated markets [1][5] Group 2 - Golden Matrix Group, Inc. (NASDAQ: GMGI) projects FY 2024 revenue of approximately $150 million, with full financial results expected soon [5] - The company utilizes AI-powered betting innovations and market expansion strategies to position itself for long-term success in Nigeria's gaming industry [5] - Meridianbet is a leading provider of betting and gaming technology, licensed in 18 jurisdictions across Europe, Africa, and South America [4]

Core Insights - Meridianbet has officially launched its B2B operations in Nigeria, enhancing its presence in one of Africa's largest and fastest-growing betting markets [1][3] - The Nigerian betting market is valued at over $2 billion, with projections indicating potential growth to $4.7 billion in annual revenue over the next decade [5] Company Expansion - Meridianbet has secured full regulatory approval from the Lagos State Lotteries and Gaming Authority through its local entity, Masterlive Network Limited, allowing operations in sports betting and online casino [2] - The launch of Meridianbet.ng is part of a strategic expansion into Nigeria, which is seen as a significant opportunity for the company's B2B model [3][4] Market Potential - Over 60 million Nigerians are actively participating in betting, contributing to the rapid growth of the industry [3] - Football is identified as the primary driver of market growth, with a vast customer base engaging in both online and offline betting [5] Financial Outlook - Golden Matrix Group anticipates a preliminary full-year 2024 revenue estimate of $150 million, indicating continued growth [4] - The Nigerian market is aligned with GMGI's global strategy to strengthen its presence in high-growth gaming markets [4] Technological Innovation - Meridianbet is introducing AI-powered betting solutions, including an AI Sports Betting Recommender and AI Casino Recommender, to enhance customer engagement and satisfaction [8] - These innovations are expected to deliver personalized betting experiences based on real-time data and predictive analytics [8] Company Background - Founded in 2001, Meridianbet operates in 18 markets across Europe, Africa, and Latin America, establishing itself as a leading technology provider and betting operator [9] - The company has a strong omnichannel presence, including retail, online desktop, and mobile gaming [9]

Core Insights - Expanse Studios, a subsidiary of Golden Matrix Group Inc. (NASDAQ: GMGI), has applied for a Class 2 iGaming license in Romania to expand its B2B content distribution in the regulated market [1][6] - The Romanian iGaming market is projected to reach $2.2 billion in 2025, indicating significant growth potential and strategic importance for Expanse Studios' expansion efforts [6] Company Overview - Expanse Studios, founded in 2017, is a leading B2B iGaming content provider specializing in high-quality slots, crash games, table games, and gamified casino experiences [4] - The company has a portfolio of over 55 proprietary games, delivering market-adapted content for regulated markets, sweepstakes platforms, and social casinos globally [4] Market Context - The application for the iGaming license follows Expanse Studios' rapid expansion in the U.S., where its content is now available in over 40 states through partnerships in sweepstakes and social casinos [6]